Investigators look into alleged insider trading at chip firm

By Lisa Wang / Staff reporter

Fri, Mar 22, 2013 - Page 13

Investigators yesterday raided Greatek Electronics Inc (超豐電子), a chip tester and packager, as part of an insider-trading probe related to Powertech Technology Inc’s (力成科技) acquisition of the firm.

Investigators searched the company’s offices and requested information on one company employee, who is believed to have been involved in the alleged insider-trading scheme, Greatek said in a filing to the Taiwan Stock Exchange.

SHARES OFFER

On Dec. 15, 2011, Powertech, which provides testing and packaging services for memorychip makers, announced a tender offer to buy a maximum 282 million Greatek common shares at NT$25.28 each on the open market.

The company hired Grand Cathay Securities (大華證券) to undertake the acquisition.

In February last year, Powertech said it had bought 244 million Greatek shares, or a 44 percent stake, for NT$6.17 billion (US$207.019 million).

Local media reported that a Greatek employee surnamed Chen and his family had purchased Greatek shares before the deal was announced, while a high-ranking executive at Grand Cathay Securities surnamed Huang also bought Greatek shares.

SEARCHES

Investigators yesterday searched the house and office of the Greatek employee and the Grand Cathay Securities executive, as well as their family’s properties, the Chinese-language United Evening News reported.

Chen and Huang were suspected to have made illegal profits of NT$10 million by trading Greatek shares, the Central News Agency reported.

Greatek said its operations and business were not affected by the investigation, adding that the company has fully cooperated with investigators.